Entitlement on absorption in or under a corporation, company or body in respect of Central Government servant covered under the National Pension System -reg.

No. - 57/03/2022-P&PW(B)/8361(4)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Pension and Pensioners' Welfare

***

Lok Nayak Bhavan, Khan Market,

New Delhi, Dated the 7th October, 2024

OFFICE MEMORANDUM

Subject: Entitlement on absorption in or under a corporation, company or body in respect of Central Government servant covered under the National Pension System -reg.

The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 to govern the service related matters of Central Government civil employees covered under the National Pension System.

2. Rule 15 of the Central Civil Services (Implementation of NPS) Rules, 2021 provides for entitlement on absorption in or under a corporation, company or body (autonomous or statutory) in respect of a Central Government servant covered under the National Pension System. The rule provides that a Government servant who has been permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a Body ( autonomous or statutory ) controlled or financed by the Central Government or a State Government, shall be deemed to have retired from service from the date of such absorption and shall be eligible to receive benefits under the National Pension System in accordance with the Pension Fund Regulatory and Development Authority ( Exits and Withdrawals under National Pension System) Regulations, 2015 as admissible in the case of exit of Subscriber on superannuation.

3. The Subscriber shall continue to subscribe to the National Pension System with the same Permanent Retirement Account Number in the new organisation if the same system exists in the new organisation and in that case he shall not receive any benefit under the National Pension System at the time of such absorption but shall receive benefits after exit from the new body or organisation, etc. where Subscriber has been absorbed.

4. However, in case, the employees of such autonomous or statutory body or public sector undertaking are not covered by the National Pension System, such subscriber may, at his option, continue to subscribe to the National Pension System with the same Permanent Retirement Account Number as a non-Government subscriber, in accordance with the regulations notified by Pension Fund Regulatory and Development Authority (PFRDA).

5. All Ministries/Departments are requested that the above provisions regarding entitlement on absorption in or under a corporation, company or body in respect of a Central Government servant covered under the National Pension System may be brought to the notice of the personnel dealing with the NPS matters of employees in the Ministry/Department — and attached/subordinate offices thereunder, for strict implementation.

(S. Chakrabarti)

Under Secretary to the Government of India

To

All Ministries/Departments/Organisations,

(As per standard list).

Please join our whats app channel (Fab Gyan)  for regular updates on GST & Personal Finance.

Disclaimer: We have taken due care while copying content of the OM for purely informational/academic purpose however mistakes may creep in while copying. Therefore, it is requested that Original Text of the OM may also please be referred. Fab Gyan and its Team will not be responsible for any mistake.